As the world and country reels from items as large as war and pandemics, alongside personal changes in family, work, and living circumstances, there are some things that remain the same: delivery services. Overall demand across the industry has increased despite claims to the contrary. According to Transport Dive, “Dry van increased from 3.5 to 3.8 loads per truck. Reefer increased from 6.0 to 6.5 loads per truck. Flatbed increased from 64.0 to 70.0 loads per truck.” Such increases in the truck to load ratios indicate that despite the current global, national and personal outlook that are changing the consumer landscape, the capacity crunch is still here to stay. So how do retailers and shippers stay ahead of the curve with capacity procurement? Many have found that answer by partnering with a freight brokerage.
1. Freight Brokerage Services Have a Larger Buying Power
A freight brokerage company is filled with agents who have invested in marketing and negotiating techniques. A great brokerage will ensure that continuing education is necessary for the whole team. These communication skills are vital in the office, but also at mixers, events, parties and trade shows where a freight broker builds relationships with carriers, shippers and other 3PLs.
Although industry relationship building can be a lengthy process, it is crucial in the long run. A quality freight brokerage company will have previously established trusting relationships with carriers, while constantly networking to add to their partner list. While cash is king, networking is queen. Supply chain optimization is more successful when a broker is the one negotiating the deals.
2. A Freight Brokerage Company Understands the Differences in Mode and What’s Best Per Order
A shipper or retailer starts conversation after conversation with questions to better learn what their customers are looking for. A freight brokerage company does the same thing with their shippers and carriers everyday. “Would truckload shipping services work for this order, or would standard freight rail be a better solution?” Consulting an expert and their freight brokerage software makes finding the answer fast and easier than ever before.
Instead of being limited to the shippers’ own understanding of transport, a digital freight brokerage can expand their reach and produce unconventional solutions that are superior to traditional methods. As companies start to noticing what freight brokerage companies can do, they are quickly becoming the go-to for transportation needs.
3. Brokers Serve Both Sides of the Industry With Shipper-Like and Carrier-Like Characteristics
Although the supply chain is truly an interwoven chain of multiple facets, some supply chain professionals might feel as if they are in between a shipper versus carrier feud. The shipper just wants a good deal and the carrier wants adequate compensation. The right freight broker tech can go a long way when a freight brokerage company is trying to walk the middle line.
Because truly, a freight brokerage agent is on both sides! They ultimately wants a mutually beneficial solution that both parties can be satisfied with. By acting as a mediator, the freight brokerage agent becomes the pathway to agreements that otherwise would not be possible. Yet still, the agent will still work to get a quality, inexpensive transport agreement for the shipper, even listening to every story needed from the shipper or carrier to build that rapport to make it happen.
4. Brokers Enable Turnkey Solutions With Managed Services
Retail logistics can be complicated. Is the retail shop the end location for customers, or do they also ship from their location? A turnkey solution provides an instantly implemented system designed end-to-end for the customer. A freight brokerage company can learn what each retailer needs in order to recommend or build out the right management system that makes a shipper or retailers’ transportation simple.
5. They Use State-of-the-Art Freight Brokerage Software
Although robot help used to be reserved for the sitcoms, today it has become a reality. With freight brokerage software, a brokerage firm can leverage all the human experience and relationship alongside the benefits of AI that minimize manual error. This hybrid system managing human relationships and computer-based logistic processes has been defined as a digital freight brokerage.
By reshaping the vital freight brokerage role between the shipper and the carrier, a broker agent assists with balancing out the assests, making sure the carrier gets paid, and provides outstanding customer service. A freight brokerage company that does this is personally invested in IOT and GPS enabled hardware, and other related technology debelopments for what they can add to their digitally enabled freight brokerage.
Overcome the Challenges of Transportation Management With Wicker Park Logistics.
Of all the things common to every sector of the supply chain, disruption is supreme. Partnering with a freight brokerage provides shippers and retailers with knowledge on the shipping terms they need to understand, and the carrier and logistic network to put it to use. To learn how a digital freight brokerage can change the dynamics of your shipping operations, reach out to Wicker Park Logistics today.